Bynaturetheyareoptimists。

Youhavetobeinbusiness。

Theygivetheglowingpresentationsthatfundmanagerswanttohear。

Theywillneveradmitthatanythingwillgowrong,orhasgonewronguntiltheyabsolutelyhaveto。

Thestockmarketistheplacefordreams。

Whenwebuyasharewebelievethatitwilldowell–reallywell。

Webuyaminingexplorer–andhavevisionsofitunearthinggoldanddiamondsbytheshovelfull。

Webuyintoaretailer–andexpectthatcustomerswillsoonbeliningthepavementoutsidetheshopfront。

Webuyintoasoftwarecompany–andwethinkwehavefoundthenextMicrosoft。

Thisisfine。

Optimismworks。

Thetendencyofthestockmarketistorise,nottofall。

Thosewhoareboldenoughtoplaythegamewalkoffwiththeprizesintheend。

Butstilltheroadisnotsmooth。

Everynowandthenwearegivenashock。

Itisthestockmarket’swayoftellingusthatthisisnotsupposedtobeeasy。

Thepriceofmakingmoneyisthosesleeplessnightsthatweendurewhenthemarketistumbling。

Nowtheshocks,likethedistantrumblesofthunder,arebeingheard。

Andtheyarecomingfromthosebusinessleaderswhoarehavingtoadmitthatperhapsthingsarenotsorosyafterall。

TheCitylikestothinkthatittakesalong-termview。

Itclaimstoweighupthestrengthsandweaknessesofanycompanyandtopricethesharesaccordingly。

ButwhenacompanyshowstheslightestsignofweaknesstheCity,liketheschoolbully,pouncesandshowsnomercy。

Thathappenedlastweek

TakethecaseofOCZTechnology(OCZ)。

Thissharehasbeenrecommendedtometimeandtimeagain。

Theshareswere,Iwastold,cheap。

Because,whenOCZfloatedonthestockmarketbackinJune2006,investorsweretoobusyplanningtheirsummerholidaystotakeaninterestinanewtechnologycompanyfromCalifornia。

OCZwasforcedtoraisethemoneythatitneededatasharepriceofjust65p。

Afterthatlessinauspiciousstart,OCZ,hasstagedafightback。

ThankstoastringofannouncementsandtheenthusiasticsupportofCitycheerleadersthesharepricehad,bythestartoflastweek,movedupto135p。

IhavemetthefounderandchiefexecutiveRyanPetersen。

Heisbright,ebullientandaproductofSiliconValley。

HetoldmeofsomeofthegizmoswithwhichOCZhaswowedtechieland。

AnATVFlashDrivein16GBcapacity…aVindicatorCPUcoolerandtheunique“silverarray”CPUwaterblocktheTrifectamemorycard,atotalflashsolutionthatfeaturesMicroSD,SD,andUSB-readinessinoneunittheEqualizermousewhichfeaturestheOCZ“TripleThreat”buttonIreadsomeofthereviewsofOCZ’sproductsand,boy,weretheyenthusiastic!

‘MadoverclockerswillloveOCZPC2-9200FlexXLC。

’saidone。

‘TheSilencer750QuadCrossFireEditionisperfectlyathomeinahigh-endCrossFiregamingrigandtheFerrariredcolorcertainlyhasacoolnessfactorthatleavesotherpowersuppliesinthedust,’drooledanother。

And,initsexcitementlosingallgraspoftheEnglishlanguage,anotherexclaimed‘Freakinfast,Modulescravevoltage,Developedbyatrueenthusiast,TiAlphaspreaderslookamazing。



Idon’tunderstandasinglewordofthis。

Andnor,Idaresay,domanypeopleintheCity。

ButwhattheydounderstandarethefewwordsdeliveredbyOCZlastweek。

‘AsignificantfallintheDRAMspotmarket’itadmitted‘hascontributedtolowerthanexpectedrevenues,grossproductmarginsandprofits。

’Wham!

Intheblinkofaneyethesharepricehalved。

OnemomentOCXwasworth£60m,thenextitwasworth£30m。

ThisisthewaytheCityreactstoaprofitwarning。

AndOCZisnottheonlyonetohavereceivedthetreatment。

WilliamRansom(RNSM),Metnor(MTG),andJohnsonServiceGroup(JSG)arethreeothers。

Theirsharepriceshavefallenby40%to60%。

Therewillbemore。

Thisiswhyinvestors’nervesaretaut。

Andwhyitistimetobattendownthehatches。

ThisarticleistakenfromTomBulfordsfreedailyemail‘PennySleuth’。

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